Sec 33-1063. Commencement of actions; limitations

A. An action against the owner or construction lender to enforce payment of the claim stated in the stop notice or bonded stop notice may be commenced at any time after ten days from the date of the service of the stop notice on either the owner or construction lender and shall be commenced not later than three months after the expiration of the period within which claims of lien shall be recorded pursuant to section 33-993, unless all the parties required to be parties to the claim stipulate in writing to an extension of the time to bring an action of not more than an additional three months.

B. Monies shall not be withheld by reason of any stop notice for longer than the three month period prescribed in subsection A of this section unless an action is commenced. If an action is not commenced, the notice ceases to be effective and the monies shall be paid or released to the contractor or other person to whom they are due. Notice of commencement of any action shall be given within five days after commencement to the same persons and in the same manner as provided for service of a stop notice or bonded stop notice.